Life Insurance

How much insurance do you need?

If you were to die, would there be enough money to cover your:

  • family's immediate living costs - things you spend money on day to day like food, transport and electricity
  • existing debts - things like your mortgage, credit cards and personal loans
  • funeral expenses?

If you've got children, you'll need to think about:

  • childcare costs if your partner were to become a single parent
  • how many of your household expenses your partner could handle alone
  • your children’s education.

Who doesn’t need Life insurance?

If no one depends on you financially, you might not need Life insurance. But remember that if you die in debt, your debts, including funeral costs, might be passed on to your estate if your savings don’t cover them.

What are the benefits?

Life cover pays a lump sum if you die, or if you’re diagnosed with a terminal illness and are expected to die within 12 months. You can apply for any amount of cover.

Who receives the money?

You can name a beneficiary, which is someone you want to receive any Life Cover or Funeral Expenses payments. If you don’t name a beneficiary, payments will be made to your estate.

Living Insurance

How much insurance do you need?

If you were unable to work because of illness, or if you were made redundant, would you have enough money to cover:

  • your current income? If you were to receive a disability benefit from WINZ, you’ll need to ask yourself if it’ll be enough to live on, to feed your family, pay the bills and keep your home.
  • your family's immediate living costs - things you spend money on day to day like food, transport and electricity?

Who doesn’t need Living insurance?

If you’ve got enough savings to cover your living costs, if you weren’t able to work for a long period of time due to a serious illness, then you might be able to get by without Living insurance, or with a reduced level of cover.

What are the benefits?

Serious Illness Trauma cover

Pays a lump sum if you’re diagnosed with a defined medical condition, such as severe cancer or a severe heart attack. A list of definitions can be found in our full policy document (PDF 215.9 KB).

The maximum amount of cover is $1 million.

Income Protection Illness cover

Pays a monthly amount if you’re unable to work because of illness. To be eligible for cover, you need to have been working for at least 25 hours a week for a single employer.

  • You can select a cover period of two or five years, which is the maximum amount of time we’ll make payments for any one illness (and any related or similar illness).
  • The cover may also pay a further lump sum if you’re likely to be permanently unable to work and need permanent assistance with defined activities of daily living. This would be assessed once you’ve received the Income Protection Illness monthly payments for the maximum cover period you’ve selected.
  • The maximum amount of cover is 55% of your gross income, up to $6,000 per month.
  • Your monthly payments could be reduced by any income you continue to receive, or are entitled to receive from other sources, including: salary or wages, including sick leave; self-employed work-related income; any other insurance-related payments from other insurance providers or government payments such as a sickness or ACC benefit.

Redundancy cover

This cover is only available if you’ve also chosen the Income Protection Illness cover.

Pays a monthly amount for up to six months if you’re not working because you’ve been made redundant. The amount covered must be the same as the Income Protection Illness cover amount.

Funeral Expenses cover

This is a complimentary cover. Whichever cover you’ve chosen, as long as it’s in place, you’ll get a lump sum payment of $15,000 to help with funeral expenses if you die, or are diagnosed as terminally ill and expected to die within the next 12 months.

Stand down periods

Stand down periods apply for these policies – this means you can’t claim for certain things immediately. Please read our full policy document for details on stand down periods.